Norris, McLaughlin & Marcus

Posts Tagged ‘repair’

IN THE NEWS: Real Estate Owners Upgrading Property As Economy Recovers

NJ BIZ reports that: Owners and property managers are back to making upgrades to technology and other improvements and maintenance to properties as the real estate market begins to improve.  ”While the real estate industry came to a standstill, technology continued to advance with products and solutions that offer enhanced efficiency and functionality,” said Mike Mullin, President of Integrated Business Systems, a Totowa-based property management and accounting systems provider . “Our clients are highly receptive to new tools that can make their day-to-day operations more profitable.”

In real estate, deciding which upgrades are worth the costs

How an Owner Can Spoil a Potentially Good Damage Claim

Guest Blogger: Andrew Linden

As we discussed in our prior entry, How a Commercial Landlord Can Avoid Spoiling a Potentially Good Damage Claim, a landlord/owner has a duty to preserve evidence of alleged damages to its premises in order to avoid a claim of spoliation. Shortly after we posted that entry, the Supreme Court of New Jersey addressed the issue of spoliation in a dispute between a building owner and its contractors.  Robertet Flavors, Inc. v. TriForm Constr., Inc., 203 N.J. 252 (2010), described below, provides a real-world example of how a potentially good damage claim can quickly go bad as a result of spoliation.

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Beware of the Ordinary Wear & Tear Clause in a Commercial Lease

Many landlords and tenants, when negotiating a commercial lease, fail to appreciate the implications of incorporating certain “standard” provisions into the lease. Many unfortunately take comfort in boilerplate language that either of the parties (usually the landlord) used in prior leases. While such an approach may make for an uncomplicated lease drafting process (assuming the tenant is of the same mind), it could prove ultimately to be a rather expensive approach to managing the leasing process once the term ends and disputes arise over the condition in which the tenant has left the premises.

One very good example can be found in the usual wear and tear provision contained in most off-the-shelf commercial leases. These clauses usually provide that the tenant will return the premises in good repair, excepting normal wear and tear. While that is all well and good, the language does not come close to articulating either party’s respective rights or responsibilities as they relate to the wear and tear of the leased premises. Because of the lack of detail contained in many “wear and tear” clauses, the landlord and tenant may very well end up investing a lot of time and money to address issues that could have been more efficiently (i.e. cheaply) addressed at the lease negotiation stage.

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